Facing the World Oil Spike, Vice President Calls for Save Energy

Facing the World Oil Spike, Vice President Calls for Save Energy

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Vice President Jusuf Kalla called on all components of the nation to save energy to face the spike in world oil prices which now reach US $ 100 per barrel.

"The bottom line in 2008 is the consumption savings and the increase in production, it's just another way, because we have decided not to raise fuel prices," he said at the vice president's office after Friday prayers in Jakarta.

He said the austerity measures have been started since the conversion of kerosene to gas, the conversion of the use of energy-efficient incandescent lighting, street lighting restrictions, billboards, and so on.

"If there is a queue, it is triggered by the difference in kerosene prices for households and industries of Rp5,000.By the price difference, there is smuggling either out or functional smuggling of the households should be diverted to industry.So the queue is not due to the supply which is reduced, "he said.

So, added the Vice President, there is no other way than to save energy consumption.

In addition to consumptive savings, the government has also set a policy of import duty and value added tax (VAT) for petroleum exploration to increase production capacity, added Jusuf Kalla.

Related to the premium transfer, the Vice President said the government is still studying more deeply.

"Currently, the contribution of the premium transfer for consumption savings has not been significant, but we will examine its implementation," he said.

The government continues to observe the development of world oil prices that continue to flare up lately.

Director General of Oil and Gas at the Department of Energy and Mineral Resources, Luluk Sumiarso, previously warned that the APBN is based on Indonesia Crude Price (ICP) formula which is lower than the price of oil in the world's "spot" market.

World crude oil prices traded Wednesday (2/1) New York time touched USD $ 100 per barrel, although then closed US $ 99.48 per barrel.Meanwhile, according to Luluk, the average price of ICP in December 2007 was only about US $ 91 per barrel.

Regarding the premium transfer plan, Luluk said the government is still waiting for ICP price to touch US $ 100 per barrel.

Meanwhile, OPEC Governor for Indonesia Maizar Rahman said the current high world oil prices do not reflect real market conditions. "The price increase is also caused by speculators," he said.

According to him, world stocks are currently reported in fairly safe conditions.

However, he continued, his side will discuss the high oil prices in extraordinary meeting of OPEC in Vienna, Austria in February.

Maizar added that developing countries that become importers of oil will be affected by the greatest of these high oil prices. (kpl /

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